Weekly Outlook 9th-13th of October, 2017

2017-10-09

Weekly Outlook 9th – 13th of October 2017

Maximusfx.com Weekly Outlook – There was a minor drop on US dollar against a list of major currency pairs on last Friday, new concerns over political pressures with North Korea, giving in earlier bulls provided after US economic reports, illustrated results stronger job rate results than expected.

The US dollar declined on Friday due to the reports over North Korea is preparing to practice a long-range missile, creating conflicts over a potential fear in the region. Furthermore, the US economy was weak on job reports in figure, 33000 jobs according to the Labor Department in September, finalizing 7 years of job boost. However, the weaker results on job was brought by slower recruitment through the influence of Hurricane Irma and Harvey.

The unemployment rate declined to 4.2% reached the bottom since 2001 and on average hourly wages increased 2.9% from a year previously.

The rise in wage inflation strengthened potentials that the Fed will increase interest rates in December.

Opportunities that US rates will increase encourage support the dollar via making US assets further attractive to yield-searching investors.

Firstly, there was slight bullish on US dollar currency pair to 112.49 before a decline to 112.62 against Japanese Yen last Friday, USD/JPY.

The Euro currency pair declined to lower level against the dollar, with EUR/USD reaching lows of 1.1670. The euro currency pair has weakened to the low since August 17.

Investors in the financial market turn their attention to a greater chance of a forthcoming illustration of FED minutes on Wednesday for further tips on the period of the following rate hike and Friday`s US data on inflation and retail sales will be in focus.  

In the meantime, recent economic illustrations of ECB President Mario Draghi and for fresh indications of when ECB will move away from its ultra-easy policy will be closely in watchlist.

Here is the weekly outlook in the financial market by Maximusfx.com categorized as a list that could cause major volatility across currencies QE policy.

9th of October, Monday

Financial Markets in Japan will be closed for a holiday

China is to publish its Caixin services PMI

Germany is to announce data on industrial production.

Financial Markets in Canada will be closed for the thanksgiving holiday

10th of October, Tuesday

Australia is to release data on business confidence

The UK is to report data on manufacturing production the trade balance

Canada is to announce data on building permits

Minneapolis Fed President Neel Kashkari is to give a speech

11th of October, Wednesday

Dallas Fed President Robert Kaplan is to give a speech

Fed is to report the minutes of policy meeting

12th of October, Thursday

Canada is to publish data on new house price inflation

The US is to release data on producer price inflation and jobless claims

ECB president Mario Draghi is due to speech at an event in Washington

13th of October, Friday

New Zealand is to report data on manufacturing index

The RBA is to give its financial stability review

China is to release trade data.

The US is to report data on inflation and retail sales, primary data on consumer sentiment.

 

Prepared by Maximusfx Senior Analyst – Z. Nuriddinov.